Jh. Pan et I. Hodge, LAND-USE PERMITS AS AN ALTERNATIVE TO FERTILIZER AND LEACHING TAXES FOR THE CONTROL OF NITRATE POLLUTION, Journal of agricultural economics, 45(1), 1994, pp. 102-112
Legislation emanating from the European Community is establishing pres
sures to take action to reduce the level of nitrates in water, and the
principles established towards environmental management indicate an e
mphasis on prevention rather than treatment. This paper analyses three
possible approaches by means of controls on fertilisers, on nitrate l
eaching and on land use. These are incorporated into a linear programm
ing model of a catchment in Cambridgeshire. The results indicate the s
uperior cost-effectiveness of controls over leaching and the severe im
pact which taxes would have on farm incomes. A system of permits on la
nd use is found to be relatively cost-effective and to offer an admini
stratively feasible alternative.